Toyota officially announced on Tuesday an 11 billion real ($2.22 billion) investment in Brazil, which will be split into two parts by 2030 and will include the production of a new vehicle designed specifically for Brazilian customers. Geraldo Alckmin, Brazil's vice president and minister of industry, announced Toyota's investment on Sunday but did not provide details, including a time frame extension.
Evandro Maggio, Toyota's CEO in Brazil, told Reuters that this is the automaker's first investment plan in the country, as it had previously announced its investments project by project. From the 11 billion reais, Maggio stated that 5 billion reais are expected to be invested until 2026, and another 6 billion reais, which Toyota has yet to decide.
The automaker said in a statement it intends to build a new hybrid flex vehicle by 2025, and a car specially designed for the Brazilian market, without confirming a date. Toyota, which is latest global automaker to unveil plans for extra investment in Brazil this year, following companies such as Volkswagen, General Motors and Hyundai Motor, own three factories in the country, all located in Sao Paulo state.
The investment plan also includes the expansion of its factories in Porto Feliz, where hybrid engines will be built by 2025, and Sorocaba, where batteries will be produced beginning in 2026. However, all operations at its Indaiatuba facility will be relocated to Sorocaba between 2025 and 2026. Maggio stated that workers will be able to migrate with the operations, as the cities are an hour apart by car.
The company declined to say how much its production capacity in the country will increase as a result of the investments.
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